You just assumed a 10-year mortgage for $180,000 at 8% interest per year. How much of the second payment will be paid to the principal balance?

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To determine how much of the second payment will be paid toward the principal, we first need to calculate the monthly payment and then figure out the interest and principal portions of the second payment. The monthly payment for a fixed-rate mortgage can be calculated using the formula for an annuity:$$PMT = P \times \frac{r(1+r)^n}{(1+r)^n - 1}$$Where:- $PMT$ is the monthly payment,- $P$ is the loan amount ($180,000),- $r$ is the monthly interest rate (8% per year or 0.08/12 per month),- $n$ is the total number of payments (10 years * 12 months/year = 120 months).Plugging in the values:$$PMT = 180,000 \times \frac{0.08/12(1+0.08/12)^{120}}{(1+0.08/12)^{120} - 1}$$$$PMT \approx 2,184.04$$For the first payment, the interest portion is calculated on the initial balance:$$Interest_1 = 180,000 \times 0.08/12 = 1,200$$So, the principal portion of the first payment is:$$Principal_1 = PMT - Interest_1 = 2,184.04 - 1,200 = 984.04$$After the first payment, the new balance is:$$Balance_1 = 180,000 - 984.04 = 179,015.96$$For the second payment, the interest portion is calculated on the new balance:$$Interest_2 = 179,015.96 \times 0.08/12 \approx 1,191.80$$So, the principal portion of the second payment is:$$Principal_2 = PMT - Interest_2 = 2,184.04 - 1,191.80 \approx 992.24$$None of the provided options exactly match this calculation, suggesting a possible miscalculation or misunderstanding in the setup of the problem as presented. Given the methodology and typical mortgage calculations, the closest match or intended answer might not be directly derivable from the provided steps, indicating a need for reevaluation of the provided options or the calculation approach.

You Just Assumed a 10-Year Mortgage for $180,000 at 8